Dane has a car valued at $20,000 that gives him a utility of 80. There is a 5 percent chance that he will have an accident that will make his car worthless, in which case his utility will be zero. His utility from a wealth of $15,000 is 76
The maximum amount Dane will be willing to pay for insurance is A) $1,000.
B) $3,000.
C) $5,000.
D) $15,000.
C
Economics
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Market equilibrium occurs when
A) other things remain the same. B) the market is changing rapidly. C) the quantity demanded equals the quantity supplied. D) buyers get the lowest possible price. E) everyone who wants the good gets the quantity he or she wants.
Economics
The supply of oil is likely to be
a. inelastic in both the short run and long run. b. elastic in both the short run and long run. c. elastic in the short run and inelastic in the long run. d. inelastic in the short run and elastic in the long run.
Economics